Q: CAN I FILE MY TAXES ELECTRONICALLY?

A: YES, YOU CAN FILE YOUR TAXES ELECTRONICALLY USING TAX PREPARATION SOFTWARE OR THROUGH THE IRS FREE FILE PROGRAM. E-FILING IS A CONVENIENT AND SECURE WAY TO SUBMIT YOUR TAX RETURN.

Q: WHAT DOCUMENTS DO I NEED TO GATHER FOR TAX PREPARATION?

A: YOU WILL TYPICALLY NEED DOCUMENTS SUCH AS W-2 FORMS, 1099 FORMS, BANK STATEMENTS, MORTGAGE INTEREST STATEMENTS, AND RECEIPTS FOR DEDUCTIBLE EXPENSES. IT’S IMPORTANT TO GATHER ALL RELEVANT INCOME AND EXPENSE RECORDS.

Q: HOW CAN I TRACK MY TAX REFUND?

A: YOU CAN TRACK THE STATUS OF YOUR TAX REFUND USING THE “WHERE’S MY REFUND?” TOOL ON THE IRS WEBSITE. YOU WILL NEED YOUR SOCIAL SECURITY NUMBER, FILING STATUS, AND THE EXACT AMOUNT OF YOUR EXPECTED REFUND.

Q: ARE THERE ANY TAX CREDITS OR DEDUCTIONS AVAILABLE TO ME?

A: YES, THERE ARE VARIOUS TAX CREDITS AND DEDUCTIONS AVAILABLE, SUCH AS THE CHILD TAX CREDIT, EARNED INCOME TAX CREDIT, AND DEDUCTIONS FOR STUDENT LOAN INTEREST, MORTGAGE INTEREST, AND STATE AND LOCAL TAXES. ELIGIBILITY AND AMOUNTS CAN VARY, SO IT’S IMPORTANT TO REVIEW THE SPECIFIC REQUIREMENTS.

Q: WHAT HAPPENS IF I CAN’T PAY MY TAX BILL IN FULL?

A: IF YOU CAN’T PAY YOUR TAX BILL IN FULL, YOU SHOULD STILL FILE YOUR TAX RETURN ON TIME AND PAY AS MUCH AS YOU CAN TO MINIMIZE PENALTIES AND INTEREST. CONSIDER SETTING UP AN INSTALLMENT AGREEMENT WITH THE IRS OR EXPLORING OTHER OPTIONS TO RESOLVE THE BALANCE.

Q: CAN I AMEND MY TAX RETURN IF I MADE A MISTAKE?

A: YES, IF YOU DISCOVER AN ERROR ON YOUR FILED TAX RETURN, YOU CAN FILE AN AMENDED RETURN USING FORM 1040X. THIS FORM ALLOWS YOU TO CORRECT MISTAKES OR UPDATE INFORMATION THAT CHANGES YOUR TAX LIABILITY.

Q: DO I NEED TO REPORT INCOME FROM SIDE JOBS OR FREELANCE WORK?

A: YES, ALL INCOME, INCLUDING INCOME FROM SIDE JOBS OR FREELANCE WORK, MUST BE REPORTED ON YOUR TAX RETURN. YOU MAY RECEIVE FORM 1099-NEC OR NEED TO TRACK AND REPORT THE INCOME YOURSELF.

Q: CAN I DEDUCT EXPENSES RELATED TO WORKING FROM HOME?

A: AS OF 2021, THE RULES FOR DEDUCTING HOME OFFICE EXPENSES FOR EMPLOYEES HAVE CHANGED. MOST EMPLOYEES CAN NO LONGER DEDUCT HOME OFFICE EXPENSES. HOWEVER, SELF-EMPLOYED INDIVIDUALS MAY STILL BE ELIGIBLE OR A HOME OFFICE DEDUCTION.

Q: WHAT HAPPENS IF I MISS THE TAX FILING DEADLINE?

A: IF YOU MISS THE TAX FILING DEADLINE, YOU SHOULD STILL FILE YOUR RETURN AS SOON AS POSSIBLE TO MINIMIZE PENALTIES. THE IRS MAY CHARGE LATE-FILING PENALTIES AND INTEREST ON ANY UNPAID TAXES.

Q: WHAT IS BOOKKEEPING?

A: Bookkeeping refers to the process of recording, organizing, and maintaining financial transactions and records of a business or individual. It involves systematically documenting all financial activities, such as: sales, purchases, expenses and payments

Q: I HAVE A BUSINESS, WHAT CAN I WRITE OFF?

A: Here is a list;

• · ANY EXPENSE THAT IS ORDINARY AND NECESSARY TO RUN YOUR BUSINESS.
• · COSTS OF GOODS SOLD.
• · BUSINESS CAPITAL EXPENSE IS DEPRECIATED
• · PAYROLL EXPENSE
• · RENT EXPENSE
• · PERCENTAGE OF BUSINESS USE OF HOME
• · AND MUCH MORE!

Q: WHAT DO I NEED TO FILE MY TAXES?

A: Here is a list;

• · TAXPAYERS WILL NEED AT LEAST 2 FORMS OF IDENTIFICATION FOR THEM AND THEIR DEPENDENTS.
• · W 2 OR 1099- NEC FORMS AND ANY OTHER RECORDS OF EARNED OR UNEARNED INCOME.
• · RECORDS OF INCOME AND EXPENSE FOR SMALL BUSINESS OWNERS